Ideal Power Inc (IPWR)

[electricuniverse]

My thoughts are I hate dilution of my shares...however, in this case, I will give ipwr a pass for the following reasons.

1. Initial ipo was for around 5.50 I believe, so at 7.75/share the shares are obviously worth more to the buyers, even though there are more of them. Looking at the chart since it's ipo, seems 7.75 is basically about its midpoint more or less.

2. Though it would have been nice to see ipwr reach profitability without an additional influx of capital...it was VERY iffy at best. Things would have to go absolutely perfect for this to happen in my opinion. The raise of capital now while the markets are at, or near a top, was a smart financial move on their part...instead of waiting until they HAD to have the money and no telling what the state of the market would be in at that time. i.e. if the markets in general were in a tail-spin in the future, I kind of doubt that would have been the best time to go looking for a raise. Now they have the money in place where it looks at least 50-50 from my perspective that they can achieve profitability without an additional raise.

3. The CEO stated on the previous CCs and investor meetings that they were well financed to the end of the year and not looking to rush out and raise additional capital. It would seem "well financed" is a relative term. I think what happened is that they couldn't ink a deal with one or more potential channel partners, until they (the futute channel partners which will be announced within the next few months I imagine) felt more comfortable with ipwr's balance sheet, i.e. they wanted to make sure that ipwr would be around for the forseeable future before commiting to their products. IF that is true, that is a very good thing. Will probably find out I imagine on the next CC.